Circular Agriculture (CA) is an economic model that maximizes the efficient use of resources and minimizes waste through reuse, repair, recycle, and regenerate of products and materials. Unlike the traditional "produce, use, and dispose" agricultural model, Circular Agriculture focuses on keeping resources within a circular loop to minimize negative environmental impacts and create sustainable value for society. Given the increasing severity of climate change and environmental pollution, understanding the critical role of CA in promoting sustainable agricultural development is essential.
Research on the implementation of CA models in Vietnam has demonstrated positive transformations, as the agricultural sector must optimize resource use, minimize waste and pollution emissions, and produce higher-quality products. Moreover, global food production and consumption are responsible for a significant portion of greenhouse gas emissions, eutrophication, land-use changes, and biodiversity loss, posing threats not only to agricultural production but also to national development. Additionally, agricultural production largely depends on finite and increasingly scarce natural resources. Therefore, transitioning to alternative production and consumption methods that are less polluting and resource-intensive is necessary, making CA a viable solution.
To develop CA, it is crucial to enhance research, application, and technology transfer, along with implementing advanced agricultural management processes to improve resource efficiency. This includes reducing input costs, increasing value within agricultural supply chains, lowering emissions, increasing the reuse and recycling rate of agricultural by-products, and forming closed-loop production systems across crop, livestock, and aquaculture sectors. Furthermore, building green, low-emission agricultural brands will contribute to a sustainable, responsible, and efficient agricultural sector.
As one of the largest fertilizer manufacturing and trading companies in Vietnam, with a pioneering mission to provide nutritional solutions for crops and contribute to building a green and sustainable agriculture, PVCFC has been proud to continuously make contributions toward CA in recent years. These efforts aim to support farmers in increasing productivity, reducing costs, and minimizing negative environmental impacts.
PVCFC participates in the circular agriculture chain through the following activities:
Research and guidance for farmers on proper fertilizer use to reduce emissions: Proper fertilization in the right amounts brings positive environmental and social impacts, such as reducing soil, water, and air pollution, and limiting the impact on biodiversity.
Research on soil improvement and nutrient-balancing functional product lines to maintain soil health: These functional fertilizers supplement active ingredients that enhance absorption and slow down fertilizer breakdown, thereby contributing to emission reduction in the environment. Additionally, they ensure that crops receive sufficient nutrients for optimal growth, preventing nutrient surplus in the soil (nutrient surplus can lead to water pollution).
Researching organic fertilizers, bio-organic fertilizers, and microbial products to develop organic agriculture and protect the environment. The use of organic and bio-organic fertilizers helps improve and stabilize soil structure, making it more porous and aerated while providing comprehensive nutrients. This enhances nutrient absorption by plants, increases soil fertility, boosts microbial activity, and improves soil health. Fertilizers containing beneficial microorganisms can promote plant growth, reduce the need for chemical fertilizers, and rehabilitate degraded, eroded, and nutrient-poor soils. Additionally, they enable the recycling of available natural resources back into the soil, optimizing resource use, lowering costs, reducing production expenses, and increasing economic efficiency in agricultural cultivation.
Researching agricultural value chains, post-harvest preservation and deep processing to enhance the quality of agricultural products while utilizing agricultural by-products to extract materials for food and pharmaceutical applications. This process adds value to products and creates a circular value chain for agriculture.
Researching high-tech agriculture by applying IoT in agricultural management and control, implementing smart irrigation and controlled irrigation systems to reduce fertilizer use, minimize environmental pollution and improve crop yield and quality,.... Developing urban agriculture solutions and services is also part of PVCFC's commitment to supporting the growth of CA.
With a strategic direction toward building a green and sustainable agriculture, PVCFC has implemented various initiatives over the years, aligning with its goals and vision for the 2021–2025 period and beyond, specifically as follows:
During the implementation of its activities, PVCFC consistently engages with stakeholders to facilitate information exchange and gain insights into different perspectives on the company's strengths and weaknesses. This engagement helps to identify and mitigate unexpected criticisms and manage stakeholder demands; Proactively identify emerging issues; Enhance acceptance of key areas; Build a positive external impression of the company; Share knowledge on sustainability-related issues. Some of the key stakeholders include:
Conducted in line with strategic direction, research objectives and plans; progress and results reports (monthly/quarterly/annually) are implemented compliantly, transparently, and timely, ensuring quality and work progress.
Collaborate with relevant departments/units to implement activities such as Research - production - trial business of new products; Conduct experiments, trials, demonstrations, and training on fertilizer application methods, cultivation processes, and farming solutions.
Comply with legal regulations (Laws, Circulars, Decrees, Directives, Guidelines,...) related to the Company's operational industries; regularly update legal documents in case of amendments for compliance; ensure timely reporting in accordance with regulations.
Implement field trials and demonstration models; provide training and guidance to farmers on product usage and cultivation techniques,... Organize meetings, seminars, and direct dialogues to gather farmers' feedback and improve operations.
Collaborate in research with Institutes, Universities, and domestic/international partners (such as Can Tho University, Mekong Delta Rice Institute, Southern Fruit Research Institute, Central Highlands Agriculture and Forestry Science Institute, Vietnam Institute of Tropical Technology, BiOWiSH® (USA), BASF (Germany), EuroBiochem (Russia),...) to communicate and conduct research on new products.
In 2024, based on the Sustainable agriculture and rural development strategy for the 2021–2030 period, with a vision to 2050, approved by the Prime Minister under Decision No. 150/QĐ-TTg dated January 28, 2022, and aligned with the strategic directions and policies approved by the Company's leadership, PVCFC has implemented the following activities and achieved the following results.
Completion of scientific research projects in agriculture:
Research on Biological additives in fertilizers.
Completed research on a biological formulation containing active ingredients to enhance the efficiency of NPK fertilizers specifically designed for vegetables and fruit trees.
Completed research on isolating, selecting strains, evaluating bioactivity, and optimizing the fermentation process at a 100-liter pilot scale for 3 microbial strains to be integrated into organic fertilizers.
Continuation of Microbial Research:
Revenue data indicates that the proportion of the Company's products designed to improve resource efficiency and environmental friendliness has gradually increased over the years.
Billion VND
Million bags
Million tons
The fertilizer production technology at the Ca Mau Fertilizer Plant is characterized using natural gas as a raw material. Therefore, the issues of greenhouse gas emissions and global warming are of particular concern and focus for PVCFC. Being aware of this, from the project implementation stage, the Company invested in production lines with current technology, specifically: Ammonia production technology from licensors Haldor Topsoe (Denmark) and Basf (Germany); Urea production technology from Saipem (Italy); Granulation technology from Tokyo (Japan); and NPK production technology from Espindesa (Spain). In addition to equipping itself with modern technology and equipment, the Company continuously improves techniques, optimizes fuel sources, and seeks new and innovative solutions to save energy and enhance capacity, thereby reducing greenhouse gas emissions at the Ca Mau Fertilizer Plant.
million Sm3/year
Below are some exemplary solutions that have been implemented at the Ca Mau Fertilizer Plant since 2022:
| Solution | Time of Implementation | Energy Savings (GJ/year) | Increase in NH₃ Output (tons/day) |
|---|---|---|---|
| Replacing the distribution system of towers S04301, S04302, C04301 | 09/2022 | - | 5.4 |
| Separated liquid from flash gas and used washed gas from C0403 as production feedstock | 11/2022 | - | 7.1 |
| Recovering Hydrogen from Offgas | Period 1: 12/2021 Period 2: 11/2022 | - | 18 |
| Installed E04212C to optimize LTS operations | 11/2022 | - | 4.4 |
| Recovery of MP vent gas at the Urea plant | 2022 | 40,404.0 | - |
| Replacement of SuperCups Trays in R06101 | 2022 | 46,401.9 | - |
| Installation of an additional hydrogen filter column for HRU in the Ammonia plant | 2022 | - | 9.05 |
| Installation of ORC Package 01 | 2023 | 5,196.1 | - |
| Replacement and installation of a new burner in Secondary Reformer R04203 | 2024 | 6,951.4 | - |
| Integration of LMS steam from the Urea plant into the plant’s LP steam network | 2024 | 8,424 | - |
| Total | 107,377.4 | 33.95 |
In KVF, the Company is always committed to reviewing and developing issues related to Safety and Sustainable Chemical Management for the environment, there have been no incidents related to chemicals or safety, specifically:
Fully equipping relevant protective gear to ensure and prevent potential incidents;
Developing an incident prevention plan;
Conducting annual health check-ups for employees;
Establishing procedures for safety control and workplace environment management for employees, etc.
For manufacturing plants in general, water usage is essential. At PVCFC, the majority of water consumption at the Ca Mau Fertilizer Plant is used for the following purposes:
For the PetroVietnam Packaging Joint Stock Company, 100% of the water used comes from the supplied water source. The company does not generate production wastewater. All wastewater used in production is 100% recycled and reused. Sanitary wastewater is treated through septic tanks (wastewater from restrooms) or pre-treated (wastewater from kitchens and handwashing) and then discharged into the industrial zone’s drainage system.
For Korea-Vietnam Fertilizer Co., Ltd., 100% of the water used is supplied by the Hiep Phuoc Industrial Park. 100% of the production wastewater is reused, domestic wastewater undergoes preliminary treatment through a septic tank. Boiler blowdown water is directed into the common wastewater treatment system of Hiep Phuoc Industrial Park as per the contract.
PVCFC consistently monitors and manages the use of clean water and river water to ensure it is done efficiently and conservatively. Additionally, PVCFC ensures compliance with legal regulations related to water resource management, as follows:
The total volume of river water extracted and the total volume of wastewater generated at the Ca Mau Fertilizer Plant depend on the Plant’s operating capacity, and currently, both volumes are within the extraction and discharge limits permitted by the relevant government authorities
m3
m3
m3/ton of products
Summary of the Process:
Sewage water → Equalization basin → Anaerobic pond → Anoxic pond → Aerobic pond → Secondary settling pond → Disinfect pond → Multimedia filtration →Clean water basin → Rainwater sewer → Ong Doc River.
Design’s Capacity: 240 m3/per day.
Summary of the Process:
Oil – Contaminated wastewater → oil water separator → slop oil pit → dissolved air Flotation unit → final storage basin → filter tank (containing activated carbon along with sand and gravel) → rainwater sewer → Ong Doc River.
Design’s Capacity: 2,400 m3/ per day.
Summary of the Process:
Ammonia polluted water → Wastewater Acceptor → Ammonia Stripper Heat exchanger → Ammonia Polluted water stripper → Ammonia Stripper Heat exchanger → Rainwater sewer → Ong Doc River.
Design’s Capacity 120 m3/ per day.
Summary of the Process:
Cooling water supply from cooling basin → Cooling water discharge pipeline → Open drainage channel for cooling water → Common drainage channel of the Plant
Design’s Capacity: 42,240 m3/per day.
Thanks to water-saving measures and the awareness of each employee, along with operating the plant at higher capacity, the amount of water consumed per ton of product in 2024 was reduced by 2.02% compared to 2023. At the end of 2024, Ca Mau Fertilizer Plant had used the system to recover the discharge water from the existing RO system, which had saved 17 m3/h from the discarded concentrate stream. This is equivalent to saving over 145,000 m3/h of water annually while also reducing the load on the old RO system and decreasing the amount of chemicals used in the water treatment process.
At PVCFC, the actual risk related to water management operations is currently very low, as the Company has implemented relatively effective control measures and solutions. The water used in the Company’s operations mainly includes supplied water and wastewater. Supplied water consists of: (1) Ong Doc River water, which is used for heat exchange with process water. (The extracted river water is not introduced into the production process but is only used for heat exchange. All river water used is returned to the environment either through liquid discharge or evaporation); (2) water supplied from the Water Plant, where part of it is demineralized for steam production, while the remainder is used as domestic water. Wastewater includes cooling wastewater after the heat exchange process and industrial wastewater, which is treated to comply with regulations (including domestic wastewater, oil-contaminated wastewater, and ammonia-contaminated wastewater).
At PPC, water management risks include the risk of clean water loss and incidents such as cooling tank or settling pit overflows, which can cause environmental pollution, impact water resources, and disrupt production activities. To effectively manage these risks, PPC implements a comprehensive set of technical and communication measures. PPC has established regulations on water resource conservation, combined with extensive awareness campaigns to educate employees on the importance of saving water. Additionally, PPC conducts regular inspections of water pipelines, related equipment, and overflow prevention devices to promptly detect and address leaks or overflows. The installation of water flow meters is also implemented to closely monitor and control water consumption, ensuring efficient use of water resources.
At KVF, the company is implementing water control and management measures, including: Inspecting and monitoring water quality through an agreement between the company and the water supply unit, with periodic water quality testing; Investing in RO filtration system technology and conducting regular maintenance and inspections; Promoting innovative initiatives in the water recirculation process within the production area; Paying environmental protection fees as required by law; Conducting periodic water measurement and monitoring. In 2024, KVF has not encountered any risks related to this issue.
energy consumption by
by the end of 2025 compared to 2022
The urea fertilizer production technology at the Ca Mau Fertilizer Plant uses key raw materials such as natural gas, electricity, water, and a certain amount of air from the environment. Among them, natural gas and electricity are the two primary energy sources, accounting for the majority of energy value and production costs. The use of natural gas and electricity has a direct impact on the environment, green economy, and society, particularly concerning climate change issues. The combustion of natural gas as fuel is the largest source of greenhouse gas emissions, with 95% of the emitted gases being CO2, and the remainder being CH₄ and N2O. The use of electricity from power plants (which rely on natural gas as a fuel source) also indirectly emits a significant amount of CO2 and other pollutants. Energy sources like natural gas are fossil resources, meaning their prolonged use will lead to resource depletion and negatively impact sustainable development.
To mitigate this negative impact, the Company annually complies with energy usage reporting requirements and develops plans for energy conservation and efficiency. At the same time, various solutions are implemented to optimize production processes, including environmental protection measures such as emission treatment, water conservation, and raising employee awareness about environmental protection and energy savings. These efforts aim to ensure the Company’s stable and sustainable development.
The development of renewable energy sources is an inevitable trend in the world today. The global energy sector is positively shifting towards “green energy” sources. Vietnam is also on the list of countries with great potential to invest in new renewable energy sources such as solar power, wind power, biomass energy, wave energy, and biogas alongside existing energy sources like electricity, liquefied natural gas (LNG), hydropower, and coal power. At PVCFC, we have recognized this trend and have proactively established research groups, organized visits, and studied the production practices at manufacturing plants that use solar energy to produce green hydrogen for other industries, green ammonia production, and green fertilizer production. In parallel, we are actively seeking solutions, researching hydrogen production and renewable energy generation: integration with chemical and fertilizer plants, aiming to complete the downstream hydrogen value chain. Additionally, we are exploring renewable energy projects in Ca Mau Province, such as wind and solar power, to identify investment opportunities and expand the capacity of the Ca Mau Fertilizer Plant using green energy sources.
Every year, PVCFC establishes regulations on technical-economic norms to guide and encourage the production operations sector to seek solutions for reducing consumption and saving energy. From 2023, PVCFC set a goal to continuously improve and optimize production and save energy, with a target to reduce energy consumption by 5% by 2025 compared to the 2022 baseline. Additionally, to promote activities under the National Program on Economical and Efficient Use of Energy for the period 2019-2030, the Company has conducted reviews, assessments, and created an approval plan for the period 2019-2030, and in order to achieve the above goal, PVCFC is consider working on more methods. These methods are divided into two main task groups: (1) Category of retrofit projects aimed at optimizing existing plant operation and (2) Category of projects aimed at emission reduction and green production applications.
Implement plans to harness green energy and partially substitute low greenhouse gas emission energy sources to increase the efficiency of green energy use annually, in compliance with Decree 06/2022/NĐ-CP on greenhouse gas emission reduction and ozone layer protection, and in line with Vietnam’s national action plan on its commitment to achieving CO2 emissions targets at COP26, with the goal of net-zero emissions by 2050.
We have been cooperating with partners to research and implement “green” projects that will be applied in the future, focusing on the trend of using renewable energy and green energy:
Rooftop solar power renewable energy project at the Ca Mau Fertilizer Plant.
Project to integrate green hydrogen production from electrolysis using renewable energy.
Project to recover CO2 from the existing natural gas stream to reduce CO2 emissions.
Project to recover CO2 from the flue gas stream from the main units.
The majority of energy is consumed at the Ca Mau Fertilizer Plant.
According to the business production plan through 2025. as approved in Resolution No. 6395/NQ-DKVN of the Vietnam Oil and Gas Group. The goal set for the Ca Mau Fertilizer Plant is to achieve a 5% reduction in energy consumption by 2025 compared to the 2022 baseline. After continuous improvements to increase production and reduce consumption, the Ca Mau Fertilizer Plant achieved a consumption reduction of 4.69% in 2023 and 4.38% in 2024 compared to the 2022 benchmark. The actual energy consumption per ton of bagged urea compared to the benchmark from 2022 to the present is as follows:
| Year | Unit | Benchmark | Actual | Difference from 2022 Benchmark |
|---|---|---|---|---|
| 2022 | GJ/Ton Urea Bagged | 22.778 | 21.827 | - 4.17% |
| 2023 | GJ/Ton Urea Bagged | 22.774 | 21.710 | - 4.69% |
| 2024 | GJ/Ton Urea Bagged | 22.763 | 21.780 | - 4.38% |
Waste control is not only a legal obligation that PVCFC must comply with but also an annual goal of the company. To achieve this goal, PVCFC continuously applies advanced and innovative technologies to minimize environmental impact while enhancing production efficiency.
With a strong commitment to legal compliance and a firm sense of social responsibility, PVCFC strives to build a business that is closely linked to environmental protection and is ready to embrace future challenges and opportunities.
In 2024, PVCFC recorded no legal violations and no waste-related incidents causing environmental pollution.
Regarding the current legal regulations, PVCFC’s waste control activities always comply with the following regulations:
With the waste management methods described above, the detailed results of waste treatment in 2024 are as follows: như sau:
Percentage processed (%) 100%
Percentage processed (%)100%
Management of Plastic Packaging
The company consistently fulfills its recycling responsibilities (EPR) for the quantity of commercial packaging used to contain fertilizers distributed in the Vietnamese market. In fulfilling this recycling responsibility, the company chooses to make financial contributions to the Vietnam Environmental Protection Fund in accordance with the provisions of Decree No. 08/2022/NĐ-CP dated January 10, 2022. However, there are currently no regulations on reasonable and valid recycling cost norms for a unit of product or packaging (Fs) as stipulated in Article 81 of Decree 08/2022/ND-CP dated January 10, 2022. Therefore, PVCFC is still awaiting specific guidance from the Vietnam Environmental Protection Fund to fulfill this responsibility.
Noise Pollution Management
Noise pollution, especially high-intensity noise, can affect workers’ hearing if they are exposed for extended periods. Therefore, the company places great emphasis on finding solutions to reduce noise to minimize its impact on employees working at the plant and the surrounding residential areas.
The main sources of noise in the production activities at Ca Mau Fertilizer Plant come from the ammonia and urea workshops; the equipment in these workshops operates continuously 24 hours a day and is designed to run fully automatically, meaning that very few workers need to be present in these areas. Additionally, workers operating in these workshops are fully equipped with personal protective equipment as required, so the level of noise impact within the plant premises on workers’ health is negligible.
Noise Pollution Management Methods
Climate change is a highly concerning global issue and is projected to become increasingly severe. It poses significant challenges for businesses, reflected in two main types of risks: “Physical Risks” and “Transition Risks”. “Physical Risks” include direct impacts from extreme weather events such as storms, droughts, prolonged heat waves, and saltwater intrusion, all of which have severely affected the agricultural sector. “Transition Risks” arise from the shift toward a low-carbon economy, requiring businesses to adapt to new policies, emerging technologies, and changes in consumer behavior.
Beyond natural factors, human activities-particularly greenhouse gas (GHG) emissions-are a major driver of global climate change. The fertilizer industry is heavily impacted by climate change while also contributing to it through its operations.
In Vietnam, the agricultural sector contributes approximately 20% of total greenhouse gas emissions, with the primary sources being methane (CH₄) from livestock and nitrous oxide (N₂O) from fertilizer use. The extensive application of urea fertilizer to soil has inadvertently created a nitrogen-rich ecosystem, including inorganic fertilizers, manure, and plant residues-an ideal environment for N₂O formation. Nutrient loss from nitrogen fertilizers into the soil (around 50%) results in low fertilizer use efficiency, preventing crops from reaching their full yield potential, increasing agricultural investment costs, and impacting farmers’ profitability. Additionally, this contributes to greater environmental harm, including higher greenhouse gas emissions, groundwater pollution, and eutrophication of surface water.
Adapting to and mitigating the impacts of climate change is a vital and necessary task across PVCFC’s production, business operations, and research and development activities. To ensure resilience and sustainable growth, PVCFC has proactively conducted risk assessments, developed a strategic sustainability roadmap, and invested in sustainable solutions.
Proactively responding to climate change, PVCFC has conducted research on greenhouse gas emissions in rice cultivation and strengthened R&D activities to address climate change.
Currently, PVCFC is focused on advancing research and development related to reducing greenhouse gas emissions. Some specific research initiatives include:
1%EQUIVALENT TO REDUCTION OF 7,158 TONS CO2
The company is committed to pioneering the full and proper implementation of environmental and social legal regulations, as well as fulfilling its responsibilities to the community for a greener industrial environment. From the beginning of production operations, the company has always focused on waste control efforts to minimize negative impacts on the environment and community, while also increasing the efficient use of resources and energy through production optimization solutions, thorough energy recovery, and greenhouse gas emissions reduction. In addition to fully carrying out its responsibilities toward the environment and community, the company also recognizes two factors that may affect its upcoming business and production activities. First is participation in the carbon credit market, as the company plans to export fertilizers to demanding markets, it hopes the government will soon issue official documents and provide guidance on calculating emissions-including Scope 1, 2, and 3-and on entering the carbon credit market. Second is the application of new environmental regulations concerning emissions at the company’s existing factories. In order for current emission levels at smokestacks (which currently meet previous standards) to comply with new standards, the company must upgrade its treatment systems, which will require appropriate solutions and costs. Therefore, the government needs to implement policies that provide guidance and support for upgrading these treatment facilities.
PVCFC strictly complies with regulations on greenhouse gas emission reporting. As a fertilizer production and trading enterprise, PVCFC adheres to the compliance reporting requirements under Government Decree No. 06/2022/NĐ-CP on greenhouse gas emission reduction and ozone layer protection, as well as Circular No. 38/2023/TT-BCT on measuring, reporting, and verifying greenhouse gas emission reduction and inventory in the industrial and trade sector. In 2024, PVCFC aims to complete the greenhouse gas inventory for the Ca Mau Fertilizer Plant and submit it to the Ca Mau Provincial People's Committee by March 31, 2025. Additionally, it will develop a greenhouse gas emission reduction plan for the 2026-2030 period, which must be submitted to the Ministry of Natural Resources and Environment, the sectoral management ministry, and the Ca Mau Provincial People's Committee by December 31, 2025. PVCFC strictly complies with regulations on greenhouse gas emission reporting. As a fertilizer production and trading enterprise, PVCFC adheres to the compliance reporting requirements under Government Decree No. 06/2022/NĐ-CP on greenhouse gas emission reduction and ozone layer protection, as well as Circular No. 38/2023/TT-BCT on measuring, reporting, and verifying greenhouse gas emission reduction and inventory in the industrial and trade sector. In 2024, PVCFC aims to complete the greenhouse gas inventory for the Ca Mau Fertilizer Plant and submit it to the Ca Mau Provincial People's Committee by March 31, 2025. Additionally, it will develop a greenhouse gas emission reduction plan for the 2026-2030 period, which must be submitted to the Ministry of Natural Resources and Environment, the sectoral management ministry, and the Ca Mau Provincial People's Committee by December 31, 2025.
As of now, PVCFC has worked with a consulting unit to prepare the 2024 facility-level greenhouse gas inventory report for the Ca Mau Fertilizer Plant (The company has already conducted training on greenhouse gas inventory reporting and emission reduction planning for relevant employees and is currently in the phase of on-site surveys, data collection, and processing).
At the Ca Mau Fertilizer Plant, the direct combustion fuel for the technological system includes fuel for the auxiliary boiler, the reforming unit, and the flare system. The total gas consumption in 2024 is estimated at 559.18 million Sm³, an increase of 0.58% compared to 2023 (555.98 million Sm³). The gas energy consumption in 2024 is 35.61 GJ per ton of NH₃, an increase of 0.65% compared to 2023 (35.38 GJ per ton of NH₃).
In 2024, for the first time, PVCFC fully reported CO2greenhouse gas emissions according to the GHG Protocol guidelines. However, the data and statistics have been monitored and compared annually. Preliminary calculations for 2024, based on the main emission sources at PVCFC show that total emissions increased by 1.43%, but the emission intensity per ton of produced product decreased by 4.45%, demonstrating the effectiveness of improvements and emission reduction solutions at the Ca Mau Fertilizer Plant
For the PPC factory, there are two main product categories: Packaging and Fertilizers. Direct emissions primarily come from DO oil combustion used as fuel and for the forklift system in fertilizer production, meanwhile, indirect emissions mainly stem from electricity consumption, primarily for packaging production. In 2024, direct emissions increased by 74.15% due to a 278% rise in fertilizer production compared to 2023. Similarly, indirect emissions increased as packaging production grew by 11.39% compared to 2023. However, the emission intensity per ton of fertilizer product decreased by 12.26% compared to 2023.
For KVF Company, the main product type is NPK fertilizer. Direct emissions come from natural gas (NG) combustion in the fertilizer production process and diesel oil (DO) used for the forklift system at the factory, while indirect emissions stem from electricity consumption. The total emissions for 2024 amount to 12,882.98 tons of CO2, representing a 1.89% increase compared to 2023. However, the emissions intensity tons of CO2per ton of product decreased by 5.46% from last year, driven by an increase in production output in 2024.
Tons CO2/year
Tons CO2/year
Tons CO2/year
We implement technical improvements to enhance production efficiency by reducing the consumption of key production materials such as gas, electricity, water, and chemicals; this, in turn, helps lower direct emissions intensity (Scope 1) and partially reduce indirect emissions (Scope 2). Additionally, the company has conducted research to develop high-performance products that improve usage efficiency, such as N46 Plus and UreaBIO (Scope 3). PVCFC is currently reviewing its information system and the calculation method for Scope 3 GHG emissions and will make an announcement once the reliability of this information meets the required standards. The company is also collaborating with research institutions and partners to continue refining and establishing a roadmap for calculating emissions from these new products.
In 2024, PVCFC continues to implement the project of planting 300,000 new trees for the 2022-2025 period, contributing to the Government's initiative of 1 million trees, aiming for net-zero emissions by 2050.
At the same time, the Company also focuses on effectively implementing energy transition efforts and reducing greenhouse gas emissions. Following the establishment of the Energy Transition and Greenhouse Gas Emission Reduction Steering Committee in 2023, in 2024, PVCFC continues to implement plans for projects such as an integrated food-grade CO2 production system, a rooftop solar energy system of approximately 5 MWh at the Ca Mau Fertilizer Plant.
The company is committed to fully complying with all legal regulations related to environmental emissions. All emission sources from the plant are strictly controlled in both quantity and quality, ensuring they always meet the permitted standards before being released into the environment:
Emission monitoring points: Primary reforming stack; Auxiliary boiler stack; Granulation stack, with monitoring parameters including: dust, CO, NOx, SO₂, NH₃, noise, and vibration. According to standards QCVN 19/2009/BTNMT and 21/2009/BTNMT.
The periodic monitoring results in 2024 at all locations are within the permitted limits. In addition to conducting periodic environmental monitoring, the company has also installed automatic and continuous monitoring systems to supervise emissions at certain locations with the following parameters: Emissions at the granulation stack: flow rate, pressure, dust, temperature, and NH₃; Emissions at the Ammonia stack: temperature, flow rate, pressure, dust, NOx, SO₂; Emissions at the NPK stack: temperature, pressure, and dust.
Automatic, continuous monitoring data is collected at a frequency of one data point every 5 minutes and is directly transmitted to the Department of Natural Resources and Environment of Ca Mau Province.
PVCFC is committed to protecting biodiversity through the following groups of activities:
Additionally, the company is conducting research on microbial products used as biological pesticides to control insects, nematodes, and plant diseases, such as:
Based on this direction, during the 2021-2025 period, a range of organic and organic microbial fertilizers, consisting of four formulas, has been developed: One traditional organic fertilizer formula; One organic mineral fertilizer formula; One organic microbial fertilizer formula; One bio-organic fertilizer formula. These developments include the following specific initiatives:
Perform soil analysis before each experiment/trial/efficiency assessment to develop suitable fertilizer formulas, helping to save fertilizer and propose appropriate dosages for each type of crop in different soil regions.
Circular Agriculture (CA) is an economic model that maximizes the efficient use of resources and minimizes waste through reuse, repair, recycling, and regeneration of products and materials. Unlike the traditional "produce, use, and dispose" agricultural model, Circular Agriculture focuses on keeping resources within a circular loop to minimize negative environmental impacts and create sustainable value for society. As one of the largest fertilizer manufacturing and trading companies in Vietnam, PVCFC is proud to be a significant part of the CA process, helping farmers increase productivity, reduce costs, and minimize environmental impact. PVCFC participates in the circular agriculture chain through the following activities:
PVCFC has always been a leader in researching and guiding the proper use of fertilizers according to the "5 Rights" principle (right soil type, right crop type, right dosage, right time, and right method) as stipulated in the Law on Crop Production and related Decrees alongside Nutrient Stewardship guidelines for sustainable fertilizer use by the International Fertilizer Association (IFA), (4R Nutrient Stewardship: right source, right rate, right time, right place - International Fertilizer Association).
PVCFC has researched specialized fertilizers for each type of crop and soil to provide recommendations on how to use them. For example: N.46. True: Helps reduce lodging in rice, increases tillering, promotes branching and increases yield; N46. Plus, N46. RICH, N46.C+, Urea Bio, NPK: specialized NPK fertilizers enhance fertilizer use efficiency, reduce nitrogen loss, lower greenhouse gas emissions, improve soil microbial activity, and restore soil environment, thereby enhancing soil health.
PVCFC has conducted research on the project "Research on Suitable Fertilizer Types and Nutritional Solutions for Mango, Durian, Pomelo, and Jackfruit in the Acid Sulfate Soils of the Dong Thap Muoi Region" with the following recommendations:
The project "Research on Solutions to Improve Fertilizer Efficiency for Rice on Major Soil Groups in the Mekong Delta" (2018) was conducted to determine fertilizer needs at each growth stage.
PVCFC has carried out the S&T task "Developing a soil fertility map and fertilizer recommendations for rice and fruit trees based on ecological zones in the Mekong Delta" to assist farmers in determining the most effective fertilization spots.
In all studies, PVCFC has highlighted that nutrient losses in fertilizer use are increasing, primarily because farmers apply fertilizer in quantities exceeding recommendations, and the common practice of broadcasting fertilizer on the soil surface leads to leaching, runoff, volatilization, and loss of nutrients—40–50% of nitrogen, 60% of phosphorus, and 50% of potassium. In addition, climate change impacts, such as rising sea levels, result in acid sulfate soil, salinization, and nutrient degradation, which pose significant challenges for cultivation and meeting crop nutrient demands, especially in the Mekong Delta region.
Whether a soil is considered “healthy” depends on its chemical, physical, and biological properties, which are interconnected through organic matter. However, in practice, farmers tend to focus only on chemical properties by applying high amounts of chemical fertilizers, while physical and biological properties play a crucial role in soil fertility. When soil structure is degraded, it leads to poor water retention (compaction) and poor drainage (crusting and waterlogging)—these are signs of physical soil degradation. Fungal pathogens in the soil can damage plant roots, causing root rot and root burn, and the imbalance of microbial populations in the soil leads to harmful microorganisms such as nematodes, and the absence of earthworms is an indicator of biological degradation. When organic matter, the binding agent of these factors, is depleted and not replenished adequately, soil health deteriorates significantly, resulting in declining crop yields.
The issue at hand is the need to determine the current fertility status (chemical, physical, and biological properties of the soil) to assess the health of major soil groups based on existing and ongoing research databases. This will help establish appropriate management practices and recommend suitable fertilizer application rates for different crops in each soil group, ultimately reducing costs and increasing farmers' income. In line with the company's needs and objectives, PVCFC has gradually introduced new environmentally friendly product lines to support sustainable agricultural development in the country. To achieve this, it is essential to thoroughly understand, update, and manage the database on soil fertility status and determine the nutritional requirements of key crops in different regions. This is crucial for shaping the company's business strategy and product development plans.
The application and updating of soil and crop status maps, integrating soil characteristics and plant nutrition databases, and identifying challenges and obstacles for each soil type and crop have become more efficient. Soil analysis also reveals a significant decline in soil nutrient content, particularly organic matter. While the current soil organic matter levels remain high, their quality is poor due to continuous farming, prolonged waterlogging, and low nutrient availability yet high accumulation of toxic substances in the soil, leading to ineffective fertilizer absorption and poor plant growth, ultimately reducing yield. For this reason, PVCFC has been researching and developing advanced products incorporating microbial strains or biostimulant compounds to improve soil conditions, restore balance, and enhance soil fertility. This enables farmers to apply fertilizers more effectively, practice sustainable agriculture, and improve soil health over the long term.
PVCFC continues to collaborate with Can Tho University in developing a digital map of soil fertility and fertilizer recommendations for crop cultivation in the Mekong Delta. Additionally, in 2024, PVCFC initiated preliminary discussions with the International Rice Research Institute (IRRI) to establish a framework for cooperation in researching soil maps of the Mekong Delta and other regions across the country. Researching soil maps holds immense significance as it serves as a foundation for guiding the development of product lines suited to different soil conditions.
Furthermore, integrating research results with "big data" will provide valuable tools to support the company's research, development, and business operations. This will enhance business efficiency, reduce labor costs, and bring even greater value to farmers, ultimately contributing to sustainable agriculture.
